Blue Horizon’s reading list is a curated collection of articles for SaaS founders and management teams. We are entrepreneurs and operators who have lived through the process of founding and scaling software companies. Here are the articles and resources we found useful this week.
Key Takeaways on Retention Benchmarks for SaaS Companies
by SaaS Capital
High growth (over 40% annualized) almost requires a greater than 100% net retention. Viewed another way, the turbo-boost of having your revenue “automatically” grow year-over-year is an extremely powerful way to get into the higher growth segment of SaaS companies. And the inverse is true as well; a “leaky bucket” with low retention is harder to fill.
It’s still early…In SaaS
By David Frankel, Founder Collective
Canva’s new $40B valuation and the charitable pledge of its founders have overshadowed the fact that the product is “just” an excellent web app. The reality is you can build a top-decile startup working on old problems, with middle-age technology, for boring customers. There are many more startups like this just waiting for the right founders.
Why You Should Repeat Yourself, A Lot
by Tomasz Tunguz on LinkedIn
When selling a company, a product, or an idea to customers, employees, investors, candidates, repeating a consistent message several times embosses the message upon the individual’s memory. It establishes clarity…Repeating yourself improves brand recall. A simple message reiterated again and again is a powerful thing.
Understand What Is Driving Customer Adoption
Totango.com
Key points:
– Continuous Onboarding
– Continuous Education
– Personalized Communication
How To Keep Your Customers For a Decade. Or Longer.
by Jason Lemkin, saastr.com
If You Truly Have Net Negative Churn and High NPS — Then Almost Any Reasonable CAC Makes Sense. If It Lets You Acquire 15+ Year Customers…Your customers will basically all stay if you overdeliver.
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Blue Horizon acquires and invests in profitable software businesses with stable recurring revenue streams. The Blue Horizon platform combines long-term capital and industry expertise with an operating model that enables businesses and their leaders to focus on growth and profitability.